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Q2 2017 IPOs: Auditor Market Share and More

There were 64 initial public offerings in U.S. markets between April 1, 2017, and June 30, 2017, which doubled from Q1. These IPOs raised over $14.7 billion, an increase of more than $2.4 billion from last quarter.

All told, there have been 96 U.S. IPOs in the first two quarters of 2017, which raised over $27 billion. For comparison, the same period in 2016 had 51 IPOs that raised $9 billion, and 117 IPOs that raised $23 million in the same period in 2015.

Industry Analysis

Offices of Bank Holding Companies (NAICS 551111) were at the top of the leaderboard in Q2. Byline Bancorp, Inc., the holding company for Byline Bank, raised just over $2 billion, the most for the quarter. Byline Bancorp became public on the NYSE market in June, the first time for a Chicago bank in 15 years, according to Chicago Tribune.

Pharmaceutical Preparation Manufacturing (NAICS 325412), with 12 new IPOs, had the most number of transactions this quarter, raising over $850 million.

As seen in the table below, Ernst & Young had 11 IPO audit clients, the most for all firms this quarter. KPMG’s audit clients raised the most proceeds, bringing in over $4.2 billion.

Of note, Moss Adams’ audit clients were in the top 5 for amount raised for this quarter. Moss Adams was also the auditor for the top company of the quarter, Byline Bancorp, Inc. In regards to non-Big Four firms, Marcum led the way with 7 IPO audit clients.

Emerging Growth Companies

56 of the 64 companies, or 88%, elected to register as emerging growth companies (“EGCs”) this quarter, an increase of about 7% compared to the 81% in Q1.

Conclusion

Overall, we have seen a much improved first half of the year compared to last year. IPOs almost doubled and the amount raised has already surpassed the total amount raised during 2016 by over $3 billion.